Kansas City Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-running, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was heretofore a financial impossibility may now be well within reach, whether for a new home you’re building in Kansas City or for the enhancement of your present home. You’ll need to act right away, though, because the federal tax credit amount is scheduled to decrease from year to year through 2021.

Here are the salient facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. Beginning in 2020, then, only 26% of the ultimate cost is covered. And in 2021, just 22%.
  • The federal geothermal tax credit can be applied retroactively to installations that are “placed in service” as of January 1, 2017, or later. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. But if your system is part of a new or newly renovated home, it’s deemed to be “placed in service” when you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy accumulated in the earth for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that tethers your geothermal system to your home.
  • There is no limit to the credit amount.

Want more facts? WaterFurnace® has assembled them for you in this nifty data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Kansas City geothermal pros at ECS Geothermal, Inc will be glad to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!